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suthrnlyts™ January 30, 2011 at 2:29 am

You might think so, but in essence, we’re now owned by the Chinese.. lock, stock and barrel. That’s where this money is coming from because they have a very vested interest.We need to be brushing up on foreign languages, mainly Chinese. That’s the only thing that I can credit Obama for when it comes to making suggestions.

Robert B January 30, 2011 at 2:30 pm

Great Question! Your kids are lucky to have you!I am a retired banker… i used to work for one of the biggest banking giants in the world, and still keep in touch with the CEOs, ex-chairmen etc, and now own a small bank myself (outside the US).The Treasury uses the federal reserve to broker their financial securities, and functions. There are a lot of mis-informed people out there saying crazy things; but here’s where it’s at: The Fed distributes nealy all of it’s proceedes back to treasury – as the treasury is great keeper of accounts, at the end of the day. Central banks (via governments) have always made money by printing money, selling notes at a high nominal rate (when there are not so many dollars around, and demand is high) and buying them back when it takes less ‘effort’ to do so – Effort, at the end of the day, is the actuall currency being represented by all this paper stuff we have these days. That process is called seigneurage.. but it’s not amazing.Take a look at the link:http://www.federalreserve.gov/boarddocs/rptcongress/annual07/sec6/c3.htm#t2And note that in the second section, you can see there is a summary of all money earned from government treasuries ($40.298B), and then at the bottom, after all the other types of costs, etc, there is a dispursement back to the treasury, minus about 6% of dividends (992m) paid to member banks, and about 3billion in losses ($34.598B).So, when the Fed prints more money (or adds more Zeros to Citibank’s electronic Bank account), it is actually writing a loan of $X (a handy way of accounting for it, as it wants the money back)… which it then charges interst on, to either the government, if it is going to the millitary, or education fund, who at some stage have to pay it back through increased labourforce productivity), or to Citibank, the United Nations, or Israel, etc, if they have been given a loan. But this money goes back to the treasury anyhow, who has either indirectly, or directly secured the loan against the productivity of its workforce, or against the security of its foreign currency reserves. If a country does not have sufficient labour productivity, or currency reserves, or if it’s currency reserves are volatile, then the rate at which the treasury will have to charge interest will have to rise, in order to compansate for risk. If the treasury decide not to charge interest, then there will be too many loans written and inflation will occur, reducing the exchange rate, which will make any foreign assets owned by that treasury, or it’s people (labourforce), worth more in comparision to the base currency in which the loans were written. this will make imports very expensive (unless, hehe, you managed to get yourself a government loan!), which will place upon that country a practical barrier to free trade (ie, it cannot afford imports).. although, if there is no accompanying salary/wage inflation, then exports will appear very cheap, and money will start to flow in, and restore the balance again.. it’s all a bit of a game/art, you see.If the treasury asks the fed to write loans that are too expensive, then they will not be able to sell them; just as if their bonds are issued at too low an interst rate, nobody will buy them. At the momennt, New Zealand has a similar problem – it’s OCR (official cash rate) is around 2.5% for loans, and about 2% for deposits… and the government does not have enough money to loan to the banks at this rate (and so lets them borrow only so much at this rate), so banks have to raise money off-shore. In this way, the retail deposits are paying 4.6%, and home loans are 5.9% or so.. So it is not a carte-blanche to do whatever.. even if you are the world’s reserve currency.From memory (not that i ever met him).. it was JP Morgan’s company that bailed out the US in the 1907 steel crisis… so i wouldn’t be surprised if he had something to do with it… but JP Morgan’s legacy was invester security… (at the espense of consumer competition)….Especially interesting in these times..!Anyhow.. I hope that helps; People spend lifetimes studdying and re-defining financial markets, products and processes, so i’ve kept it quite bbrief, but I hope that’s a good start, at least?!All the best with your family.WIth kind regards,Rob.

Fly in the Ointment January 31, 2011 at 2:09 am

Yes, there are quite a few rare items; the various military decorations depend on how good of condition they’re in. I own a WWI second class iron cross myself.However, I think it’s illegal to personally own a grenade.I’ll pay you $40 for all of it provided you send me pics. Email me.